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Net Banking: Meaning, Features, Advantages & Disadvantages

5paisa Research Team

Last Updated: 21 Feb, 2024 04:23 PM IST

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Net banking has made surfing through banks an easy task. Not only is it fast, but it is also secure and more accessible. Anyone with an active bank account can enjoy net banking facilities. If you are someone who can utilize it, register for net banking today. 

To get started, individuals need an active account at their preferred bank. Users can register using the necessary credentials, including an active internet connection. Read on to learn more about what is meant by net banking, its features, advantages, and disadvantages.

What is Net Banking

Net banking is a way of accessing any banking services online with which users can carry out necessary financial operations from the comfort of their homes. The respective banks offer this online service for increased accessibility. 

Net banking allows customers to carry out financial operations with the click of a button without physically visiting their banks. With net banking, customers can transfer funds, open new accounts, buy insurance, and even recharge and pay bills.

Features of Net Banking

Different banks will have their unique features, though. Here are some general ones that you must learn to know what is net banking and how it works:
   

• Transferring funds
Online fund transfer has always been challenging. Money can be easily transferred from one account by utilizing modes of NEFT, UPI, IMPS, or RTGS. Fund transfer is possible between one’s account, two accounts of the same bank, or even between different accounts.
• Bill Payment
With online banking, credit card bills, utility bills, and other payments have been made easy. Customers also use it to pay mobile bills and buy necessities online.
• Track records
By using apps that govern net banking, users can track their payments. It saves a trip to the bank to update passbooks and records real-time payments. 
• Buying insurance
Net banking is not only limited to making bill payments and tracking records. Bank users can apply for insurance or loans online as well. 
Net banking is not only limited to making bill payments and tracking records. Bank users can apply for insurance or loans online as well. 

Advantages of Net Banking

There are ample advantages of net banking besides making financial management easier. Take a look at some of them:
   

• Security
One of the main reasons behind increasing trust in online banking is its security. With the help of encryption and automatic logout features, banks can access customers’ sensitive data. Use a unique password and PIN to ensure further safety.
• Accessibility
Net banking allows you to deal with your finances with the click of a button. It is simple and efficient. It can be done without standing in long queues and ignoring your daily tasks. Additionally, online banking is available 24*7 even when banks are officially closed. It makes banking much more convenient.
• Tracking method
You can keep track of your payments in real-time, which helps you calculate your spending better. Being able to track real-time also helps to recognize any suspicious activity and lets you deal with it as soon as possible.
• Online shopping
With the rise of the Internet, online shopping has become one of the main modes of shopping. Be it medicines or groceries, net banking has helped its users pay through an app easily. These apps often come with a bonus to avail of offers on these online purchases. With the help of mobile apps, you can also pay by scanning the merchant code in an emergency cashless situation.
• Easy cancellation
In case of an accidental or automatic payment, users can cancel it conveniently. Net banking enables easy blocking of cards and edits of its users’ necessary credentials. For each cancellation, users can apply for a refund immediately. You can expect a refund within 5 to 7 working days.

Disadvantages of Net Banking

Like any other online service, net banking also has certain limitations. Measure them out before making a decision.
   

• Frauds and Scam
As much security there is with net banking, it is not free from fraudulency and scammers. This is why keeping your ID, Password, PIN, and other sensitive information safe is important. There are ample examples of customers’ data being hacked. You might fall victim to one if you do not take the required security measures.
• Requirement of Internet
The Internet is the main ingredient in the successful usage of online banking. With a stable internet, you can register for online banking services. A flaky internet connection often leads to failed or double transactions. 
• Technical disputes
Technical difficulties can bar a successful transaction or other services. It can also be hard for technically challenged people to access net banking. Disturbances in the system can turn this into a bitter experience.

How to Register for Net Banking Online?

Now that you know the meaning of net banking, read out these instructions on registering for net banking online. In case you need to make a fresh account, follow these instructions.
   

• The first registration step requires clicking “login” to personal or retail banking from the bank’s website. 
• Click the “New User? Register Here” option on the next page.
• If you have your ID and Password, log in to your account. 
• If you don’t have your ID and Password, click “Next.”
• It will show a “Self Registration Form” where you have to put in your details of account number, email address, debit card details, mobile number, branch code, and other details. Then click on “Submit.”
• The next page will require you to put in the OTP or One-Time Password sent to your registered mobile number. Remember, OTP is time-sensitive.
• After that, the page will give you your temporary ID and Password, which you can use to log in.
• After logging in, make sure to change your Password to your own. 

Conclusion

Convenience is key for online banking. It has altered how users have dealt with finances with the help of the Internet. Here, you have learned about the definition of net banking, its disadvantages and advantages, and how to register online. It is not only a convenient way, but it also makes tracking records and bill payments easier. 

However, certain measures must be taken while signing up for this service as it comes with concerns. Net banking can be convenient, time-efficient, and secure with the required safety. Remember to change your password every two months, avoid sharing your ID and password, and beware of frauds and scammers. 
Get started by creating your net banking account online today.

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Frequently Asked Questions

All websites allow customers to change their net banking password online. For this, you must log in, open your profile, go to your account settings, and click update/change password.

Some precautions to be taken before using net banking are to use secure WiFi, use a unique password, keep your PIN safe from others, and avoid using public WiFi.

Yes, using and managing multiple accounts with a single net banking profile is possible. In this case, though your ID will be the same, your account number will vary for each account. To make transactions from a specific account, select the particular account number.

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